Belhaven invests nearly £5m in Scottish pubs as business rates warning looms

Belhaven invested almost £5m in its Scottish pub estate in 2025, with spending spread across 22 managed, leased, tenanted and franchised venues.

The investment marked a fourfold increase in refurbishment activity compared with previous years and included the first Scottish rollout of the brewer and pub operator’s Hive and Nest franchise models, operated through its Pub Partners division.

Key managed pub refurbishments included Molly Malones in Aberdeen, the Merlin in Edinburgh and the Kittoch in East Kilbride. In total, six managed pub projects accounted for more than £2.5m of investment, with an average spend of about £400,000 per site. Three of the projects were in Edinburgh and one was in Glasgow.

Pub Partners also launched nine franchise pubs in Scotland during the year, at a total cost of £2.2m. Around £500,000 was invested in the Stables in Stenhousemuir, alongside two new franchise openings in Edinburgh and four in Glasgow.

In addition, six-figure sums were invested across seven leased and tenanted pubs, with significant works carried out at the Mallard in Dingwall and the Steelworks in Motherwell.

The investment comes as hospitality businesses in Scotland face the prospect of higher operating costs. Recent analysis by UKHospitality Scotland of the draft valuation roll published by the Scottish Assessors Association indicates that rateable values could rise by an average of 23% across the sector in 2026 unless action is taken.

The trade body has warned that business rates increases would add pressure at a time when pubs and other hospitality venues are already dealing with higher costs, and has called on the Scottish Government to consider measures such as pausing the move to new revaluations.

Belhaven said its franchise expansion has been informed by the performance of the Hive and Nest models in England, where parent company Greene King operates more than 90 franchise pubs.

Under the Scottish franchise offer, operators can take on a pub with an initial cost from £3,000, covering agreement fees, induction and on-site training. Franchisee earnings are linked to a share of food and drink sales, with additional opportunities for profit-sharing and performance-related bonuses.

Penelope Bruce, Pub Partners operations director, said: “We have been thrilled to launch and successfully drive our franchise pub concepts across Scotland this year. We will continue to support our growing family of franchisees every step of the way as they build thriving pubs at the heart of their local communities. 

“It’s been so good to see the appetite from experienced operators choosing our franchise models as they realise the potential and benefits. These nine pubs have been rejuvenated in 2025 and we hope to work with the Scottish Government to show how they can ease the regulatory burdens facing the pubs sector so that investments like this can thrive for years to come.”

David McBride, Belhaven Pubs business unit director, said: “Scottish hospitality is renowned, and we have many historic and iconic pubs here full of stories and memories for so many people. These are not just bricks and mortar, they are much-loved hubs of local communities and cities.

“We need the Government to listen to the industry and address the need for meaningful reform of business rates. We can see how pubs in England are bracing for cost rises in April and we are hoping that the Scottish Government listens to the calls from the industry and steps in to prevent significant business rates rises at a time when a number of other costs are already due to rise in 2026.”

He added: “Despite the ongoing economic and legislative challenges and costs of doing business, we have a duty of care to our pubs, pub teams, customers and communities to make sure we offer the best possible service and experience in our pubs so investment remains vital. 

“Our work highlights the social and economic value in protecting our pubs, maintaining the character of each site while adapting to changing consumer needs. We will continue to work with all parties to help our pubs thrive in Scotland.”